Business & Tech

MD's Initial Jobless Claims Rise; State Investigates Fraud Scheme

Initial unemployment claims in Maryland are on the rise again. Meanwhile, the state is investigating another unemployment fraud scheme.

Initial unemployment claims in Maryland are on the rise again. Meanwhile, the state is investigating another unemployment fraud scheme.
Initial unemployment claims in Maryland are on the rise again. Meanwhile, the state is investigating another unemployment fraud scheme. (Shutterstock)

MARYLAND — First-time unemployment claims in Maryland rose last week to 15,361, up from 12,790 the previous week, according to the state's labor department.

The latest figure — which covers the week ending Dec. 5 — pushes the total number of filings since early March to more than 1.38 million.


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While the number of initial filings has dropped substantially from its peak in May, it is still high by historical standards.

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Prior to the pandemic, jobless claims in Maryland hovered between 2,000 and 6,500 per week. During the public health crisis, however, these numbers have fluctuated between 2,090 and 109,263. The all-time pandemic high was for the week ending May 2.

Of the 15,361 workers who applied last week, 2,593 filed for Pandemic Unemployment Assistance (PUA) — a federal program for gig workers, contractors, and other self-employed people who otherwise are ineligible for regular jobless benefits.

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The jurisdiction with the most PUA claims last week was Prince George's County, with 482, according to state data.

Claims filed for Pandemic Emergency Unemployment Compensation (PEUC) — a federal program that provides an additional 13 weeks of pay to workers who've exhausted their other benefits — was 2,268.

The most PEUC claims were filed in Baltimore County, with 363.

In late summer, the state began offering an additional 13 weeks of jobless aid to those who have exhausted both their regular unemployment and PEUC benefits.

Last week's filings for extended unemployment benefits (EB) was 284. Most applications came from Baltimore County, with a total of 55.


MD Uncovers Fraud Scheme Targeting Hogan, Other Top Officials

Gov. Larry Hogan (R) announced Wednesday that he and other top Maryland officials — including Lt. Gov. Boyd Rutherford and Labor Secretary Tiffany Robinson — were targeted in an unemployment insurance fraud scheme.

Hogan's office said the scheme involved using the personal information of high-ranking state government officials to file fraudulent jobless applications.

"This kind of fraud truly can happen to anyone, and we need to remain vigilant," Hogan tweeted.

Officials said the claims were blocked immediately, and that an investigation is underway by the Maryland State Police and the U.S. Labor Department's inspector general's office.

"This latest fraud scheme only reinforces the need to maintain the heightened security measures in place to protect Marylanders and the integrity of the state’s program," Robinson said. "We are working closely with our law enforcement partners to ensure that all of these criminals are brought to justice."

In July, the state announced it had thwarted a "massive and sophisticated criminal enterprise" that involved more than 47,500 fraudulent unemployment insurance claims and totaled more than $501 million.

The Maryland Department of Labor caught the attempted theft over the July 4 weekend, when workers noticed an influx of out-of-state residents applying for unemployment insurance. These identities were not stolen from the state's unemployment database, Hogan emphasized, but came from previous federal breaches.

In 2020, state labor officials said they have identified more than 214,000 in-state and out-of-state claims as potentially fraudulent.

Of the 115,356 out-of-state claims that have been flagged, 105,738 — or 91.7 percent — either didn't upload the requested documentation or had their documentation denied.

Of the 98,769 in-state claims identified as potentially fraudulent, 76,388 — 77.3% — either didn't upload the requested documentation or had their documentation denied.

Since the pandemic began in March, the Maryland Department of Labor has paid more than $8.2 million in unemployment insurance benefits to claimants.


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